Cervus Announces Delay in Releasing its Annual Financial Results.

TORONTO -- Cervus Financial Group Inc. ("Cervus"), (TSX:CFG), is a financial services company dedicated to providing mortgages through select mortgage brokers. The company announced today that it would release its annual financial results for the year ended September 30, 2005 later than the statutory filing deadline of December 29, 2005. Cervus expects to release the results by January 31, 2006. There have been multiple sources of delay in financial statement preparation. First, Cervus management have recently been occupied with completing the previously announced private placement of convertible debentures and warrants and related matters, which has delayed completion of the audit of the company's annual financial statements. In addition, management has recently identified a need to consider the classification of revenue items on the financial statements. The potential classification change requires detailed analysis to be completed by Cervus and to be subsequently audited. The classification change, if any, will be technical in nature and is not anticipated to effect the Corporation's annual results for the year ended September 30, 2005. Cervus has notified the Ontario Securities Commission and the securities regulators in the other jurisdictions in which it is a reporting issuer of the delayed filing.

The Ontario Securities Commission will be imposing a management cease trade order, affecting insiders of Cervus and may impose an issuer cease trade order against Cervus if the annual financial results are not filed by February 28, 2006. The British Columbia Securities Commission may also impose a management cease trade order against individuals resident in that province. Cervus intends to issue a default status report on a bi-weekly basis during the default period and acknowledges that a failure to do so may result in an issuer cease trade order being imposed against the company sooner.

About "Customer for Life"

The Cervus "Customer for Life" model enables the mortgage professional to retain the relationship with the borrower as a customer throughout the life of the mortgage. The compensation model also creates a continued revenue stream in the form of trailer fees, a one time origination fee and a renewal fee every time the customer renews with Cervus. This creates income security for the mortgage professional allowing a long-term relationship to be developed with the borrower. This long-term relationship subsequently gets passed along to the institutional investor of the mortgage security, creating a higher yield long-term investment cash flow stream. The Cervus "Customer for Life" model creates profitable relationships for the borrowers, mortgage professionals, institutional investors and for Cervus.

About Cervus

Cervus Financial Group Inc. is a Canadian financial services company created as an industry initiative with leading mortgage broker companies and fixed income investment banks to become a high-yield residential mortgage producer and the largest mortgage broker lender of conventional insured and insurable mortgages in Canada. Our new and innovative business model demonstrates contracted asset accumulation of $22.5 billion in mortgages over five to seven years by fusing industry ownership, technology, service delivery and long term recurring revenue for the mortgage brokers.

Cervus works on the basis of a "Customer for Life" model, where the borrower is the client of the mortgage broker and Cervus is effectively the "Back Office - Servicer" between borrowers and investors. Cervus has assembled an experienced management team and board of directors who are knowledgeable in banking, financial services and related businesses. Cervus is focused on funding and servicing insurable conventional and high ratio insured residential mortgages originated through mortgage brokers. Cervus is currently licensed under Ontario, Quebec, British Columbia and Alberta mortgage broker/lender legislation and is seeking similar regulatory approvals in other Canadian Provinces as required. Cervus's head office and Ontario operations centre is located in Toronto, with additional sales offices in Vancouver, Calgary and in Montreal. Cervus Financial Group Inc. conducts all lending operations through its wholly-owned subsidiary, Cervus Financial Corp.

Forward-looking (safe harbour) statement

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes," plans," "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Additional information about Cervus is available on SEDAR (www.sedar.com).

The TSX does not accept responsibility for the adequacy or accurac y of this release.

Cervus Financial Group Inc. (TSX:CFG)